FM assures investors over booming stock market

NEW DELHI: Finance minister P. Chidambaram today assured investors that the soaring stock market is reflecting strong economic fundamentals and that there was no evidence of share manipulation.

Chidambarams assurance came as the countrys stock market index has hit a new high by nearly 30 percent. "I am satisfied there is no manipulation that has come to our notice," Finance Minister P Chidambaram said.

He said instead, the bull run reflected "current fundamentals" of the economy, which the government forecasts will grow seven percent in the financial year ending next March, and especially corporate sector strength.

Many analysts have predicted that the second quarter results of many companies are expected to be as solid as it was in the first quarter. "Let us wait and see," Chidambaram said, referring to corporate results for the July-September quarter.